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The Soybean Derivatives Market size is forecast to increase by USD 91.35 billion, at a CAGR of 6.29% between 2023 and 2028.
North America experiences robust market growth, driven by the surging adoption of plant-based diets. The increasing preference for plant-derived protein sources, particularly soybean derivatives like soy protein, soybean oil, and soy-based ingredients, amplifies market demand. Ag Processing Inc. contributes to this trend with offerings such as Soybean Meal, a high-protein feed ingredient for animals, and Soy Hulls, a highly digestible fiber source primarily used in livestock feed rations. This aligns with the global trend of embracing plant-based alternatives, reflecting evolving consumer preferences and market dynamics.
The market shows an accelerated CAGR during the forecast period.
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One of the key factors driving the market growth is the high nutritional value of soybeans. Soy is a major legume of Asian origin and a complete protein that contains all nine essential amino acids, including histidine, isoleucine, leucine, lysine, methionine, phenylalanine, threonine, tryptophan, and valine. In addition, soybeans are a high-protein plant-based food and a member of the pea family.
Moreover, for most people, particularly those who consume a vegan or vegetarian diet, soybeans are a crucial source of protein. In addition, soybeans have a wide range of nutritional benefits as they are nutritious and high in protein. Furthermore, soybeans are abundant in vitamin C and folate, are low in saturated fat, and are a good source of thiamin, potassium, phosphorus, calcium, iron, magnesium, carbohydrates, and a good source of polyunsaturated fat. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the increased utilization of soybeans in animal feed. Soybean meal is a major protein source in animal feed, providing essential amino acids that are essential for the growth and development of livestock, poultry, and aquaculture. In addition, the demand for soybean meal in animal feed contributes significantly to the overall growth of the global market.
Moreover, the global demand for meat and animal products, driven by population growth and rising incomes, has led to the expansion of the livestock and poultry farming industries. In addition, there is an increasing interest in vegetarian and plant-based diets for livestock due to changing consumer preferences and concerns related to sustainable and ethical practices. Furthermore, soybean meal, as a plant-based protein source, aligns well with these trends, contributing to its continued utilization in animal feed. Hence, such factors are driving the market growth during the forecast period.
The presence of soybean substitutes is one of the key challenges hindering market growth. Plant-based proteins are gaining traction worldwide, and where soy cannot be utilized, producers are switching to other plant-based proteins, including pea, wheat, rice, pulse, canola, flax, and chia protein. For example, pea, wheat, and rice proteins are widely substituted for soy protein, particularly due to consumers' unfavorable perceptions of soy products.
Therefore, the food and beverage industry uses low soy protein. In addition, the high cost of soy also paves the way for other plant-based proteins on the market, which offer similar benefits at a very low price. Therefore, other cheaper plant-based substitutes can negatively impact the market. Therefore, it is expected to hinder the market growth during the forecast period.
The availability of soybean derivatives across the offline segment will increase the market growth. Offline segments, including supermarkets, grocery stores, and local markets, provide access to a wider consumer base. In addition, this is especially important for reaching consumers in diverse geographical locations, including rural areas with limited online accessibility. Moreover, offline channels leverage established retail networks with a physical presence. In addition, this allows soybean derivative products to be sold in physical retail stores, attracting the attention of consumers who prefer to shop in brick-and-mortar establishments. Furthermore, offline distribution channels provide opportunities for direct customer interaction and engagement. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The soy oil segment is estimated to witness significant growth during the forecast period. The soy oil segment is perceived as a healthy cooking oil due to its favorable nutritional profile. In addition, it is low in saturated fat, contains essential fatty acids, and is a good source of vitamin E. Furthermore, the neutral flavor and high smoke point of soybean oil make it suitable for various culinary applications, including frying, sauteing, baking, and salad dressings.
The soy oil segment was the largest segment and was valued at USD 96.60 billion in 2018.
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Moreover, growing awareness of the importance of health and wellness has encouraged consumers to choose cooking oils that are perceived as healthier alternatives. In addition, soybean oil, being low in saturated fat, aligns with the preferences of health-conscious consumers. Furthermore, the rise in the number of people opting for plant-based and vegan lifestyles has increased the demand for cooking oils derived from plant sources. In addition, soybean oil is often economically competitive compared to some other cooking oils, making it an attractive choice for both consumers and food manufacturers. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The tremendous availability and abundance of soybeans play a major role in the growth of the market in North America. In addition, favorable agricultural conditions and practices contribute to a robust supply chain. Moreover, ongoing innovations in the food industry, including the development of new soy-based products and formulations that cater to changing consumer preferences, drive regional market growth. In addition, the increasing consumption of processed and convenience foods, where soybean derivatives are often used as ingredients, supports the growth of the regional market. Furthermore, economic stability and rising disposable incomes can positively impact consumer spending on food products, including those containing soybean derivatives. In addition, investments, collaborations, and partnerships among companies enhance the supply chains for soybean derivatives, making products more accessible to consumers. Hence, such factors are driving the market growth in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Arpadis Group, BASF SE, Bunge Ltd., Cargill Inc., CHS Inc., Crown Soya Protein Group, Fuji Oil Holdings Inc., Gujarat Ambuja Exports Ltd., Linyi Shansong Biological Products Co. Ltd., Nordic Soya Oy, Olenex Sarl, Patanjali Ayurved Ltd., Qingdao Foodrich Soya Tech Co. Ltd., Sonic Biochem Extraction Pvt. Ltd., The Scoular Co., Uday Oil Group, and Wilmar International Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth driven by the rising demand for plant-based food alternatives among health-conscious individuals. Key products like soy protein isolates and tofu are gaining traction as consumers seek saturated fats and cholesterol-free options. This trend is particularly evident among those following vegetarian and vegan diets, emphasizing the importance of plant-based protein sources. Factors such as soybean prices, weather conditions, and global supply and demand dynamics influence the market, impacting trade policies and the availability of alternative protein sources like pea protein and almond protein.
The soybean derivatives industry faces challenges due to its complex supply chain, involving farmers, processors, and distributors. The pandemic has reshaped consumer behavior, emphasizing the importance of pantry staples and online retail channels. Despite disruptions, the market continues to thrive, driven by the growing adoption of health and environmental benefits associated with organic soy-based products and plant-based meat substitutes. From animal feed formulations to food preparation in the food and beverages segment, soybean derivatives play a vital role in meeting the diverse needs of end consumers across global customer bases and regional boundaries.
Soybean Derivatives Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.29% |
Market Growth 2024-2028 |
USD 91.35 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.93 |
Regional analysis |
North America, APAC, South America, Europe, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, India, Brazil, and Argentina |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ag Processing Inc., AOS Products Pvt. Ltd., Archer Daniels Midland Co., Arpadis Group, BASF SE, Bunge Ltd., Cargill Inc., CHS Inc., Crown Soya Protein Group, Fuji Oil Holdings Inc., Gujarat Ambuja Exports Ltd., Linyi Shansong Biological Products Co. Ltd., Nordic Soya Oy, Olenex Sarl, Patanjali Ayurved Ltd., Qingdao Foodrich Soya Tech Co. Ltd., Sonic Biochem Extraction Pvt. Ltd., The Scoular Co., Uday Oil Group, and Wilmar International Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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